Cisco Government Affairs E-Update

Volume 2, Issue 38

1 November 2002

Brought to you by Cisco Government Affairs Online: http://www.cisco.com/gov

This Week@Cisco in Government Affairs

Cisco's E-Update keeps you up to date on the major policy news of the week. Focusing on broadband, education and e-government areas, but covering high-tech and telecom in general, the E-Update is a great source of information for state, federal and international policymakers. To subscribe, send a message with “subscribe” in the subject line to “Subscribe-eUpdate@cisco.com

If you have news or announcements that you think other e-update subscribers would be interested in, please send them to jearnhar@cisco.com.

This Week@WASHINGTON, DC

FCC HEAD URGES AIRWAVE CHANGES - The nation's top communications regulator said that he favors giving companies more flexibility to use the airwaves in providing telephone, Internet, television and other services.  New rules for the management of spectrum would let broadcasters, wireless service providers and other companies react more quickly to consumer demand -- without necessarily getting permission from the Federal Communications Commission, Chairman Michael Powell said in a speech at the University of Colorado in Boulder.  http://www.siliconvalley.com/mld/siliconvalley/4408321.htm
Chairman Powell’s Speech: http://www.fcc.gov/Speeches/Powell/2002/spmkp212.html

CARRIERS TO GOVERNMENT: DON’T TREAD ON US - While Bell company lobbyists work to gain regulatory reforms designed to stimulate facilities investment and reduce government influence over their businesses, some in Washington say it's time for the government to get more involved in broadband.  Participating in a panel discussion at The Yankee Group's Telecom Forum last week, Keith Kayes, Democratic staff director for the Senate Commerce Committee, said it's possible the government eventually will need to subsidize broadband buildout. “You can't just look at [the Bell companies] and deregulate them in the hope that they will invest in facilities,” Kayes said. “The government has always subsidized telecom providers.”  http://www.internettelephony.com/microsites/Magazinearticle.asp?Magazinearticleid=158972&srid=11320&instanceid=25154&pageid=5539&magazineid=7&siteid=3

ULTRAWIDEBAND GETS A BREAK  - A new study suggests a wireless technology called ultrawideband causes less interference for bandwidth neighbors than first believed.  In fact, common household appliances like laptops or microwave ovens are more of an interference threat than ultrawideband (UWB), according to the Federal Communications Commission (FCC) study.  The FCC approved UWB products for sale in the United States in February, setting limits on the signal's power to calm fears about possible interference with GPS (Global Positioning System). UWB product makers believe the limits were unnecessary and ultimately make UWB equipment less appealing to consumers. 
News: http://news.com.com/2117-1033-963101.html
FCC report: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-2786A2.pdf (Adobe)

ITI RELEASES HIGH TECH VOTING GUIDE, REVEALS POLICY PRIORITIES FOR NEXT CONGRESS - The Information Technology Industry Council (ITI) unveiled its High Tech Voting Guide for the 107th Congress at a National Press Club briefing. ITI also gave a preview of its top public policy priorities for the 108th Congress, which include digital rights management, broadband deployment, and export controls.  "ITI is encouraged by the legislative accomplishments of the 107th Congress and will continue our efforts to garner bipartisan support for policies that promote the understanding and advancement of the digital world," said Rhett Dawson, president of ITI.  The High Tech Voting Guide (http://www.itic.org/vote_guide/107/index.html) reflects the commitment of the 107th Congress to deliver key votes on legislation that supports the goals and vision of the information technology (IT) industry.

ABERNATHY: FCC MUST EVOLVE WITH THE TIMES - FCC Commissioner Kathleen Abernathy told attendees of The Yankee Group’s telecom forum that the commission must keep pace with technological changes and marketplace developments, identify and eliminate barriers to infrastructure investment and facilitate the deployment of innovative new services in order to stay true to the vision laid out by Congress when it enacted the Telecom Act.  Technology has developed so rapidly, and continues to develop at such a frenetic pace, that policies developed as recently as five years ago “may represent exactly the wrong approach today,” she said.  “Rather than clinging to old paradigms, we should set those paradigms aside when they cease to be of use,” Abernathy said. “We can’t survive and remain relevant if we think of ourselves as a typewriter repair shop” in a computer world.  http://telephonyonline.com/ar/telecom_abernathy_fcc_evolve/index.htm

This Week@EMEA

SCIENTISTS PLAN TO SHAKE HANDS VIA INTERNET - Scientists in Britain and the United States will try to shake hands.  No big deal one might think -- only they will be 5,000 km (3,000 miles) apart, using the Internet to connect them.  In a technological first, they will use pencil-like devices called phantoms to recreate the sense of touch across the Atlantic, organizers of the experiment said. The phantoms send small impulses at very high frequencies down the Internet using newly developed fiber optic cables and extremely high bandwidths. When a scientist in London prods a screen with the phantom, the sensation should be felt by a colleague in Boston, and vice versa.  http://story.news.yahoo.com/news?tmpl=story2&cid=581&ncid=581&e=6&u=/nm/20021028/tc_nm/technology_handshake_dc

SPEECH - Prof. Mario Monti European Commissioner for Competition Policy EU Competition Policy Fordham Annual Conference on International Antitrust Law & Policy New York, 31 October 2002 - http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/02/533|0|RAPID&lg=EN

SPEECH - Mr Erkki Liikanen Member of the European Commission, responsible for Enterprise and the Information Society "SMEs, Internal Market, Entrepreneurs and their importance to the vitality of the EU" Small Business, Big Markets, One World 29th International Small Business Congress Amsterdam, 28 October 2002 - http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/02/529|0|RAPID&lg=EN

COMMISSION WELCOMES INAUGURAL MEETING OF EUROPEAN REGULATORS' GROUP IN TELECOMS - The inaugural meeting of the European Regulators' Group for electronic communications networks and services was held recently in Brussels. In his opening address Erkki Liikanen, European Commissioner for Enterprise and the Information Society said, "Today is an important day as we embark towards the implementation of the new regulatory framework. This inaugural meeting formally marks the establishment of the European Regulators' Group. It brings into being one of the key components of the EU policy on electronic communications, networks and services". http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/1553|0|RAPID&lg=EN

ECTA SUBMISSION TO THE EUROPEAN COMMISSION'S 8TH IMPLEMENTATION REPORT - Each year the Commission prepares a report on the status of implementation of EU telecommunications legislation in the different Member States. This year's report is the 8th in line. http://www.ectaportal.com/html/index.php?pgd=regulatory_article&sc=1&rec=37

IS STRUCTURAL SEPARATION A PRE-REQUISITE FOR EFFECTIVE COMPETITION IN EUROPE’S TELECOMMUNICATIONS MARKETS? - ECTA, the European Competitive Telecommunications Association, will hold a public policy seminar in the European Parliament. The Seminar will take place in room P 4 B1 of the European Parliament in Brussels on Wednesday the 6th November. It will run from 1-3pm (with lunch beforehand from 12:30) and is generously sponsored by Arnold and Porter. These issues will be discussed by a panel including: Nick Clegg MEP and Rapporteur on the LLU Regulation; Michael Ryan, partner at law firm Arnold & Porter; Jonathan Sandbach, Cable & Wireless. Attendance is free, but due to the security requirements of the European Parliament ECTA attendees must register in advance – to register please send your name and address to Jonna Byskata - tel: +32-2-282 18 36,  email: jbyskata@ectaportal.com. 

This Week@Asia/Pac

SUMMARY OF RECENT APEC MEETING ACTIONS - Positive broadband, e-government, and e-learning results at the APEC leaders meeting in Los Cabos, Mexico this past weekend.  1.  The Los Cabos APEC Leaders Declaration called for accelerated work to stimulate broadband network investment, as well as programs to ensure all have access to the Internet and the skills to use it.  2.  Leaders also reiterated their commitment to universal Internet access within APEC by 2010, noting Internet use had doubled since setting their goal in 2000.  They urged further action on connectivity for rural areas, SMEs, women, youth and disables.  3.  Leaders called for more work on distance learning.  Secretary Powell in a separate statement called for APEC to develop a long range strategy on e-learning to help close the digital divide.  4.  Ministers approved a Strategy Report for promoting e-government in APEC and urged its implementation. http://usinfo.state.gov/admin/022/2002declaration.html, http://usinfo.state.gov/admin/022/digital.html, http://usinfo.state.gov/admin/022/wwwhministers2002.html

CHINA'S BROADBAND MARKET PRIMED FOR EXPLOSIVE GROWTH - Propelled by a boom in Digital Subscriber Line (DSL) services, China's broadband business is expected to grow by nearly 500% in 2002 and 654.7% in 2003, according to a report from Strategy Analytics on Tuesday.  This report predicts that 2.9 million Chinese households will subscribe to broadband Internet services by the end of 2002, up from 500,000 in 2001, according to the market research firm. In 2003, the research firm predicts that 8.4 million Chinese households will have broadband services. And by 2008, the market will grow by more than fourfold to 36.7 million households in China, the report said. http://www.cmpnetasia.com/ViewArt.cfm?Artid=17339&Catid=2&subcat=62

THE PINCH OF PIRACY WAKES CHINA UP ON COPYRIGHT ISSUE - When the members of the preview audience showed up at China's fanciest new movie theater here this week, they were treated to much more than just the first look at Zhang Yimou's big-budget martial-arts film, "Hero."  Viewers had identity card numbers inscribed on their tickets. They were videotaped as they entered the theater's foyer. They handed over all cellphones, watches, lighters, car keys, necklaces and pens and put them in storage. Before taking their seats, they passed through a metal detector. Then they got a welcoming address.  "We are showing this preview for your enjoyment tonight," announced Jiang Wei, an executive with the film's Chinese distribution company. "I plead with you to support our industry. Please do not make illegal copies of this film."  http://www.nytimes.com/2002/11/01/business/01PIRA.html (Free Registration required)

CHINA BEEFS UP BIZ WITH DOT-CN - Expanding its online presence, China will begin letting overseas websites use addresses with its "dot-cn" national suffix starting in December, a foreign company picked to sign up subscribers said Thursday.  The step gives foreign companies a new avenue to court China's fast-growing population of Internet users, adding to the communist government's campaign to exploit the Internet commercially.  http://www.wired.com/news/politics/0,1283,56124,00.html

CHINA RALLIES INDUSTRY BEHIND DOMESTIC 3G CELLULAR PLATFORM - Beijing is rallying its telecommunications industry behind a homegrown version of third-generation cellular technology known as TD-SCDMA. If the Chinese government decides to favor the Chinese-made technology over rival standards, it could deal a blow to major foreign telecom vendors trying to sell equipment to the world's largest market.  http://online.wsj.com/article/0,,SB1035744528950759871,00.html (Paid subscription required)

This Week@Americas/International

UPDATE ON CANADA'S INNOVATION STRATEGY - Since February, Industry Canada and its partners organized 34 regional summits and 80 sectoral consultations to hear from a cross-section of decision makers from the business and academic communities, as well as representatives from Aboriginal, youth and non-governmental organizations across the country. During that process, the views of over 5000 Canadians were heard, including those of 1000 young people. Minister Rock also met with provincial and territorial Ministers in June to discuss progress made in the various jurisdictions. This input will help shape a Canadian Action Plan on Innovation and Learning to guide Canada's progress over the next decade. Industry Canada has spent $7.5 million since February 2002 to ensure that Canadians'views have been heard. http://industriecanada.ca/cmb/welcomeic.nsf/261ce500dfcd7259852564820068dc6d/85256a220056c2a485256c62007377a7!OpenDocument

DES PME ONT DOUBLE LEURS REVENUS GRACE L'INTERNET - L'implantation de solutions d'affaires Internet permettrait de faire doubler les profits d'une PME, affirme une récente étude. Selon le sondage mené par l'École d'administration Schulich de l'Université York, de Toronto, les PME qui ont implanté des solutions d'affaires Internet ont vu leurs revenus augmenter de 7% par année, en moyenne.  http://www.cyberpresse.ca/reseau/economie/0211/eco_102110152727.html

This Week@US States

WIRELESS NETWORKS SHIFT INTO HIGH GEAR - A wireless Net service provider unveiled a new broadband service that it claims offers speeds 20 times faster than typical dial-up services.  Monet Mobile Networks, based in Kirkland, Wash., announced its Monet Broadband service in Duluth, Minn., Tuesday. The network will be one of the first in the United States to take advantage of the CDMA20001x EV-DO wireless standard, according to the company.  By November, Monet plans to offer the wireless broadband network in several cities in North Dakota, South Dakota and Wisconsin.  http://news.com.com/2100-1033-963808.html

ILLINOIS ORDERS INDIANA SITE TO CEASE MEDICAL SERVICE - Illinois medical regulators ordered Mydoc.com, an Internet business that lets consumers seek on-line advice and get prescription drugs from doctors they have never met, to stop operating in the state. The Illinois Department of Professional Regulation on Oct. 16 issued a cease-and-desist order against Mydoc, citing the Indianapolis company for practicing medicine without a license and for having doctors prescribe drugs online for patients with whom they had no relationship and without performing a physical examination. The agency on Oct. 21 rejected Mydoc's request to stay the order.  http://online.wsj.com/article/0,,SB103593237075252871,00.html (Paid subscription required)

OTHER TECH STORIES OF THE WEEK

NOBEL-WINNING ECONOMIST HAILS INTERNET'S POTENTIAL - The Internet-based economy has decades of huge growth ahead, despite the bursting of the stock market bubble, Nobel prize-winning economist Michael Spence.  "The growth potential is staggering if your time horizon is 10 to 20 years, and it may take longer than that," he told an audience at University of Toronto. "I believe it will occur over several decades at an accelerating pace." The growth of network-based information technology "will make the idea of the global economy real" as the basic infrastructure is built in different parts of the world, he said in a presentation at the Rotman School of Management.  http://rtnews.globetechnology.com/servlet/ArticleNews/tech/RTGAM/20021029/wspen1029a/Technology/techBN/

FIBER TO THE HOME MARKET IN GEAR  - Towns are turning to optical technology for super-fast, future-proof communications.  It's a bit of a chicken-and-egg thing. We won't see strong demand for residential broadband access until there are applications people want to use it for. But applications won't be created and sought after until enough people are willing to subscribe. One way to break the cycle is to offer ultrafast and reliable Internet connections, multiple phone lines with enhanced features, video, telemedicine and education services, all for a reasonable price. Vaulting over traditional broadband technologies, fiber-optic technology delivers Internet, voice and video at lightning-fast speeds - from 2M to 100M bit/sec and beyond. Moreover, fiber optics can transmit data over much longer distances; 6.2 to 49.6 miles over single-mode fiber-optic cabling vs. a few thousand feet for copper cabling.  http://www.nwfusion.com/net.worker/news/2002/1028netlead.html

BOTTLENECK BREAKERS - Efforts to wire U.S. homes with high-speed Internet access are foundering. New technology could help--if only carriers could afford to buy it.  The much-hyped broadband revolution is sputtering. Five years after cable companies and local phone giants first teased consumers with dreams of fat pipes beaming the Internet, on-demand video and hundreds of other services into the home, just 15% of U.S. households have signed up. In Canada, with lower prices and higher data speeds, usage is almost twice as high.  http://story.news.yahoo.com/news?tmpl=story&u=/fo/20021025/bs_fo/2002_10_bottleneck_breakers

12-HOUR RULE EXPIRES; DISTANCE-EDUCATION PROVIDERS HAD LONG SOUGHT ITS DEMISE - The 12-hour rule is dead. The U.S. Department of Education is issuing a final regulation in the Federal Register to kill a once-obscure financial-aid restriction that had become a source of repeated complaints. Distance-education providers have been calling loudly for the rule's demise for several years, arguing that it prevented them from developing innovative online programs.  http://chronicle.com/free/2002/11/2002110101t.htm

MIT TRIES FREE WEB EDUCATION - the MIT OpenCourseWare project is a preliminary pilot in the Massachusetts Institute of Technology's effort to publish online all its course materials. As of Sept. 30, people with an Internet connection and a Web browser have been able to access the syllabus, lecture notes, exams and answers, and in some cases, even the videotaped lectures of 32 MIT courses. By the 2006-2007 school year, MIT plans to publish the course materials for virtually all of its 2,000 graduate and undergraduate courses. The move to put the materials online stems from a multiyear effort by the MIT faculty to forge a unified approach to online access to its classes. Their are no plans to charge for any of the material. "We are fighting the commercialization of knowledge, much in the same way that open-source people are fighting the commercialization of software," said Jon Paul Potts, an MIT spokesperson. http://news.com.com/2100-1023-961563.html?tag=fd_top_5

SOFTWARE HEALS SYSTEMS WHILE THEY WORK - Researchers at Pennsylvania State University said they have developed software that can repair a database that has been attacked, even as it continues to process transactions.  Scientists at the Cyber Security Group at Penn State's School of Information Sciences and Technology said the software can quarantine malicious commands sent to database management programs as it simultaneously repairs any damage done to the system.  http://news.com.com/2100-1001-964109.html

STUDIOS, RIAA WARN CEOS ON FILE TRADING - Record companies and movie studios are turning an anti-piracy spotlight on corporate America, sending a letter to top CEOs this week warning of illegal file trading going on at "a surprising number of companies."  The Recording Industry Association of America (RIAA), the Motion Picture Association of America (MPAA) and songwriters' associations have drafted a letter expected to be sent Friday to the Fortune 1000 companies, cautioning executives that employees' song- or movie-swapping could put them at legal risk.  http://msnbc-cnet.com.com/2100-1023-963208.html

FACTS & STATS

ONLINE HOLIDAY RETAIL SALES TO GROW - eMarketer estimates online retail sales will grow to $13 billion this season.  http://www.emarketer.com/news/article.php?1001787&ref=ed

ONLINE HOLIDAY SALES TO DOUBLE IN CANADA - Canadians will spend twice as much online this holiday season as they did in 2001, reports Globe Technology.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358471&rel=true

COLLEGE STAFF USE NET TO PREPARE COURSEWORK - Over 80 percent of faculty staff at North American colleges and universities believe that web-based technology is a key contributor to student success.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358461&rel=true

FIBER-TO-THE-HOME ACCESS GROWING IN US - IDG.Net report that fiber-to-the-home (FTTH) will be available to 315,000 households in the US by 2003.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358473&rel=true

HUGE RISE IN BROADBAND SUBSCRIBERS IN JAPAN - IDC Research forecasts that the number of broadband subscribers in Japan will reach 18 million by the end of 2006.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358455&rel=true

OVER 13 MILLION US BROADBAND SUBSCRIBERS - ISP-Planet reports that 13.1 million households in the US now subscribe to broadband services.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358470&rel=true

SINGAPOREANS EMBRACE BROADBAND - IDC forecast that there will be 270,000 broadband access service subscribers in Singapore by the end of 2002.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358463&rel=true

CISCO GOVERNMENT AFFAIRS@2002

Cisco’s top policy focuses for 2002 are the areas of Education, Broadband Deployment and eGovernment.  To read or listen to our thoughts on these issues, please visit our Government Affairs home page or our visit our multimedia section. http://www.cisco.com/gov/multimedia/index.html

E-UPDATE ARCHIVE

To view past issues of Cisco’s Government Affairs E-Update, visit our E-Update Archive page. http://www.cisco.com/gov/archive/eupdates/index.html

DISCLAIMER

Positions in articles and papers from outside sources are in no way endorsed by Cisco Systems' Office of Government Affairs.  We offer articles on topics of interest to our audience to further the debate on the issues that are important to high-tech.  To view our positions on the policy matters that we care about, please visit our Government Affairs homepage. – http://www.cisco.com/gov

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